Its Official! US Default Risk (1Y CDS) Now Higher Than Peru!

I used to write that the US is fast becoming Venezuela or Argentina. But its now official — the US has greater default risk than Peru!

Credit default swaps (CDS) represent the price of insuring against default. So it is now more expensive to insure against a US debt default than perpetually mismanaged Peru.

Dina Boluarte is the first woman to become President of Peru. She was sworn in following a failed self-coup d’état by President Pedro Castillo which resulted in his impeachment, ousting, and arrest.